Originally posted by NDA
To get above all the noise here for a minute:
a) The project is probably marginally viable based on the JORC Resource to date.
b) The western zone has a significant (positive) impact on the project financials, hence management wanting to include it in the numbers.
c) Once the western zone is converted from an Exploration Target to an Indicated Resource, IMO CLA should be in a position to release the SS.
IMO Management have made an error in attempting to use an Exploration Target to maximise financials. The ASX is right to pick up on this and withhold the data. As soon as we have a Resource including western zone, then ASX should be more comfortable with CLA releasing financials that include the west. Rightly, the market has not responded kindly. I see this as being consistent with BB's view that you 'only get one shot at an SS'. They tried to go in with the best numbers possible but they just got a little ahead of themselves - you need the Resource before you can release SS guys! Chalk this one up to experience...
If you look past all the bleating and moaning on this forum, IMO all info to date points in the same direction we'd always suspected - the Resource is there, the flowsheet is sound and the product is in demand. Yes, numbers will confirm the minutia, however you'd be completely throwing the baby out with the bathwater here if you see this as a fatal announcement (but then, the ASX is a stubbornly fickle market so... here we are).
I'd put money on the SS numbers being shown in draft format to some of those prospective offtake partners in the interim, and that can only be a positive.
Remain calm.
Couldn't agree more. I was actually gonna ask the question, earlier, whether I was missing something... I think its pretty straight forward that the company made a mistake (Albeit a pretty silly one) including the western zone numbers in CAPEX/OPEX figures.
The announcement itself is not negative, it just didn't have the information the market was expecting and, rightly, the SP got punished.
Not sure if it was possible to delay the SS once they realised the financials could not be presented. However, even if they did that the SP would have gotten smashed, for the delay. For mine we are in exactly the same position as before the release of the SS, however at least we now know we are moving towards a PFS.
(20min delay)